Business Finance

Bonus shares are additional shares given to existing shareholders without any extra cost, based on the number of shares that a shareholder already owns. This guide will explain what bonus shares are, why companies issue them, their benefits, and provide an example for better understanding. What are Bonus Shares? Bonus shares are free shares that […]

A bought deal refers to a type of financial transaction in which an investment bank or underwriter agrees to purchase securities directly from an issuer, usually at a fixed price, before offering them to the public. This arrangement is commonly used in capital markets to raise funds quickly for companies seeking to issue new shares

Bought note refers to a financial instrument issued by a financial institution, typically a bank, to secure funds for a specific purpose. It represents a form of debt instrument where the issuer borrows money from investors or other financial entities in exchange for a promise to repay the principal amount plus interest over a specified

Box spread is a complex options trading strategy that involves combining four different options contracts to create a risk-free position. It is used by investors and traders in financial markets to exploit arbitrage opportunities when the options’ prices are mispriced relative to each other. Importance of Box Spread Significance: Box spreads are utilized to lock

Breakeven analysis is a fundamental concept in business and financial management that helps organizations determine the point at which total revenue equals total costs, resulting in neither profit nor loss. This analysis is crucial for decision-making, allowing businesses to understand profitability thresholds and make informed strategic choices. Definition and Purpose Definition: Breakeven analysis is a

Break-up value is a financial metric used to assess the minimum worth of a company or its assets if it were to be liquidated or sold off in parts. This metric is crucial for investors and analysts to understand the underlying value of a business beyond its going concern value. Definition and Purpose Definition: Break-up

A bridging loan is a financial tool used to bridge a temporary gap in funding between two transactions, typically the purchase of a new property before the sale of an existing one. This type of short-term financing is often used in real estate transactions but can also be applied in various other scenarios where immediate

In the realm of economics and finance, broad money serves as a crucial indicator of the total money supply within an economy. Understanding broad money involves grasping its components, significance in monetary policy, and implications for economic stability. Definition and Components Definition: Broad money refers to the total amount of money circulating in an economy,

A bucket shop refers to an illegal or unregulated brokerage firm that engages in speculative trading activities, often in a fraudulent manner. These operations typically involve offering speculative financial products or gambling services without holding legitimate positions in the underlying assets. Definition and Nature Definition: A bucket shop is an unauthorized brokerage or trading establishment

Budgetary Control is a vital tool in financial management that organizations use to monitor and manage their financial performance against predefined budgets. This practice helps ensure efficient resource allocation and effective financial planning. Definition and Purpose Definition: Budgetary Control refers to the process of setting budgets, monitoring actual performance, comparing it with the budgeted figures,